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Australian Broker Call *Extra* Edition – Nov 23, 2021

Daily Market Reports | Nov 23 2021

This story features AFT PHARMACEUTICALS LIMITED, and other companies. For more info SHARE ANALYSIS: AFP

An additional news report on the recommendation, valuation, forecast and opinion changes for ASX-listed equities.

In addition to The Australian Broker Call Report, which is published and updated daily (Mon-Fri), FNArena has now added The Australian Broker Call *Extra* Edition, featuring additional sources of research and insights on ASX-listed stocks, also enlarging the number of stocks that make up the FNArena universe.

One key difference is the *Extra* Edition will not be updated daily, but merely "regularly" depending on availability of suitable quality content. As such, the *Extra* Edition tries to build a bridge between daily updates via the Australian Broker Call Report and ad hoc news stories, that are not always timely for investors hungry for the next information update.

Investors using the *Extra* Edition as a source of input for their own share market research should thus take into account that information after publication may not be up to date, or yet awaiting another update by FNArena's team of journalists.

Similar to The Australian Broker Call Report, this *Extra* Edition includes concise but limited reviews of research recently published by Stockbrokers and other experts, which should be considered as information concerning likely market behaviour rather than advice on the securities mentioned. Do not act on the contents of this Report without first reading the important information included at the end of this Report.

The Australian Broker Call *Extra* Edition is a summary that has been prepared independently of the sources identified. Readers will check the full text of the recommendations and consult a Licenced Advisor before making any investment decision.

The copyright of this Report is owned by the publisher. Readers will not copy, forward or disseminate this Report to any other person. For more vital information about the sources included, see the bottom of this Report.

COMPANIES DISCUSSED IN THIS ISSUE

Click on a symbol for fast access.
The number next to the symbol represents the number of brokers covering it for this report -(if more than 1)

AFP   APE   BWX   CCX   DDH   ELO (2)   EVN   HLA   IPH (2)   JLG   MNY   NUF   PLT   UMG  

AFP    AFT PHARMACEUTICALS LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $4.63

Jarden rates ((AFP)) as Overweight (2) –

Jarden makes minor changes to earnings estimates after AFT Pharmaceuticals announced 1H22 earnings (EBIT) of $5.5m. Management remains confident of a stronger 2H performance following positive trading to date and diminishing covid delays.

These delays led to supply disruptions, and deferred product launches and OTC sales, with Australian OTC and hospital channels particularly affected. The company will consider a dividend policy on reaching net debt of $25-30m by year-end. 

The target price increases to NZ$5.15 from NZ$5 and the Overweight rating is maintained.

This report was produced on November 18, 2021.

Current Price is $4.63. Target price not assessed.
The company's fiscal year ends in March.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 0.00 cents and EPS of 14.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 32.38.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 7.53 cents and EPS of 23.33 cents.
At the last closing share price the estimated dividend yield is 1.63%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.85.

This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

APE    EAGERS AUTOMOTIVE LIMITED

Automobiles & Components – Overnight Price: $13.78

Bell Potter rates ((APE)) as Buy (1) –

Lockdowns and supply interruptions have impacted upon Eagers Automotive's FY21 guidance for underlying operating profit (PBT). As a result, there was a -5% miss versus Bell Potter's forecast though management noted "robust" demand and an expanding order book.

Also, Easyauto123 is continuing to deliver growth with significant year-on-year improvement, according to the company.

While the broker makes only minor changes to FY23 forecasts, after assuming no further supply constraints by the end of 2022, the target price eases to $17.75 from $18.75. The Buy rating is unchanged.

This report was published on November 18, 2021.

Target price is $17.75 Current Price is $13.78 Difference: $3.97
If APE meets the Bell Potter target it will return approximately 29% (excluding dividends, fees and charges).
Current consensus price target is $17.81, suggesting upside of 29.2%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 53.40 cents and EPS of 123.80 cents.
At the last closing share price the estimated dividend yield is 3.88%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.13.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 89.7, implying annual growth of 55.8%.
Current consensus DPS estimate is 56.8, implying a prospective dividend yield of 4.1%.
Current consensus EPS estimate suggests the PER is 15.4.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 47.50 cents and EPS of 101.40 cents.
At the last closing share price the estimated dividend yield is 3.45%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.59.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 93.7, implying annual growth of 4.5%.
Current consensus DPS estimate is 54.7, implying a prospective dividend yield of 4.0%.
Current consensus EPS estimate suggests the PER is 14.7.

Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

BWX    BWX LIMITED

Household & Personal Products – Overnight Price: $4.51

Bell Potter rates ((BWX)) as Buy (1) –

At the AGM, BWX updated on its distribution rollout and noted broad-based gains across Australian, US and European markets. This was supported by the ongoing rollout of direct to consumer (DTC) websites.

The broker looks through short-term headwinds which include the transition to the new purpose built manufacturing facility and shipping cost price rises. It's felt the company is well positioned to execute its three year growth plan. 

The Buy rating and $6.10 target price are unchanged.

This report was published on November 18, 2021.

Target price is $6.10 Current Price is $4.51 Difference: $1.59
If BWX meets the Bell Potter target it will return approximately 35% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 6.10 cents and EPS of 17.60 cents.
At the last closing share price the estimated dividend yield is 1.35%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.62.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 8.40 cents and EPS of 24.10 cents.
At the last closing share price the estimated dividend yield is 1.86%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.71.

Market Sentiment: 0.5
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

CCX    CITY CHIC COLLECTIVE LIMITED

Apparel & Footwear – Overnight Price: $6.49

Bell Potter rates ((CCX)) as Buy (1) –

Bell Potter makes no material changes to EPS forecasts for City Chic Collective, following AGM management commentary. In the US, (the company's largest market, based on active customers and website traffic visits) the analyst highlights strong growth continues.

The strength in the US will offset short-term logistics issues in the UK, explains the broker. Positively, online sales haven't slowed in A&NZ, despite the emergence from lockdowns in VIC and NSW, points out Bell Potter.

The target price rises to $7.40 from $7.05 and the Buy rating is  retained.

This report was published on November 18, 2021.

Target price is $7.40 Current Price is $6.49 Difference: $0.91
If CCX meets the Bell Potter target it will return approximately 14% (excluding dividends, fees and charges).
Current consensus price target is $6.90, suggesting upside of 6.3%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 3.90 cents and EPS of 14.50 cents.
At the last closing share price the estimated dividend yield is 0.60%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 44.76.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 15.3, implying annual growth of 59.5%.
Current consensus DPS estimate is 4.3, implying a prospective dividend yield of 0.7%.
Current consensus EPS estimate suggests the PER is 42.4.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 14.30 cents and EPS of 19.10 cents.
At the last closing share price the estimated dividend yield is 2.20%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 33.98.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 20.3, implying annual growth of 32.7%.
Current consensus DPS estimate is 6.3, implying a prospective dividend yield of 1.0%.
Current consensus EPS estimate suggests the PER is 32.0.

Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

DDH    DDH1 LIMITED

Mining Sector Contracting – Overnight Price: $1.19

Canaccord Genuity rates ((DDH)) as Buy (1) –

A trading update from DDH1 reported rig utilisation rates ahead of expectations in the first quarter, with Canaccord Genuity noting utilisation improved from 77% in the previous corresponding period to 86%, well ahead of the expected 1.5% utilisation growth in FY22. 

Additionally, revenue per rig increased 16% and number of rigs increased by 6%. Utilisation growth forecast increases to 4% for FY22, contributing to revenue and earnings per share forecasts increasing 2% and 3% respectively for FY22 and FY23. 

The Buy rating is retained and the target price increases to $1.59 from $1.55. 

This report was published on November 19, 2021.

Target price is $1.59 Current Price is $1.19 Difference: $0.4
If DDH meets the Canaccord Genuity target it will return approximately 34% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 5.10 cents and EPS of 22.40 cents.
At the last closing share price the estimated dividend yield is 4.29%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.31.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 5.90 cents and EPS of 10.80 cents.
At the last closing share price the estimated dividend yield is 4.96%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.02.

Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

ELO    ELMO SOFTWARE LIMITED

Jobs & Skilled Labour Services – Overnight Price: $5.32

Canaccord Genuity rates ((ELO)) as Buy (1) –

Elmo Software has announced the addition of $20m capital flexibility, which Canaccord Genuity estimates leaves the company around $30m in headroom for growth investment past the point of free cash flow breakeven. 

The additional capital was a combination of an $11m Commonwealth Bank ((CBA)) debt facility expansion and the $9m Webexpenses cash earn-out payment being paid in scrip. 

The Buy rating and target price of $8.70 are retained. 

This report was published on November 18, 2021.

Target price is $8.70 Current Price is $5.32 Difference: $3.38
If ELO meets the Canaccord Genuity target it will return approximately 64% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 28.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 18.73.

Forecast for FY23:

Canaccord Genuity forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 16.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 31.48.

Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources


Jarden rates ((ELO)) as Buy (2) –

Jarden believes investor concerns around Elmo Software’s ability to invest for growth will be lessened following the attainment of greater balance sheet flexibility. 

This comes after the company increased a debt facilty by $11m, and announced the Webexpenses earnout will now be 100% settled in scrip, reducing the FY22 cash outflow by around -$9m.

The Overweight rating and $6.02 target price are maintained.

This report was published on November 18, 2021.

Target price is $6.02 Current Price is $5.32 Difference: $0.7
If ELO meets the Jarden target it will return approximately 13% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Jarden forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 27.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 19.07.

Forecast for FY23:

Jarden forecasts a full year FY23 dividend of 0.00 cents and EPS of minus 27.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 19.42.

Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

EVN    EVOLUTION MINING LIMITED

Gold & Silver – Overnight Price: $4.26

JP Morgan rates ((EVN)) as Downgrade to Neutral from Overweight (3) –

After a share price rally in reaction to Evolution Mining increasing its stake to 100% of the Ernest Henry mine, Morgan Stanley lowers its rating to Neutral from Overweight. The target also slips to $4.50 from $4.60. 

While the broker acknowledges 13-26% near term EPS accretion, a review of the Ernest Henry financial model results in a two year cut to the mine life.

The potential to extend the deposit and increased optionality from latent milling capacity are not included in forecasts, as the analyst prefers to await details from an upcoming pre-feasability study.

This report was published on November 19, 2021.

Target price is $4.50 Current Price is $4.26 Difference: $0.24
If EVN meets the JP Morgan target it will return approximately 6% (excluding dividends, fees and charges).
Current consensus price target is $4.37, suggesting upside of 2.5%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY22:

JP Morgan forecasts a full year FY22 dividend of 10.00 cents and EPS of 20.00 cents.
At the last closing share price the estimated dividend yield is 2.35%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.30.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 18.1, implying annual growth of -10.4%.
Current consensus DPS estimate is 4.9, implying a prospective dividend yield of 1.2%.
Current consensus EPS estimate suggests the PER is 23.5.

Forecast for FY23:

JP Morgan forecasts a full year FY23 dividend of 10.00 cents and EPS of 30.00 cents.
At the last closing share price the estimated dividend yield is 2.35%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.20.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 26.1, implying annual growth of 44.2%.
Current consensus DPS estimate is 5.2, implying a prospective dividend yield of 1.2%.
Current consensus EPS estimate suggests the PER is 16.3.

Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

HLA    HEALTHIA LIMITED

Healthcare services – Overnight Price: $2.12

Shaw and Partners rates ((HLA)) as Initiation of coverage with Buy (1) –

Shaw and Partners initiates on Healthia, a leading, diversified allied healthcare provider. Core strategy involves improving value by consolidating allied health businesses allowing for interdisciplinary cooperation and reduced costs through integrated management. 

Having grown from 152 clinics in FY20 to currently operating 288 clinics, there is a notable growth trajectory and the broker expects Healthia's $20m per annum capital deployment target will grow market share from a current 2.2% to more than 5% in the medium term. 

The recent acquisition of Back in Motion unlocked previously untapped potential for international expansion, with 13 New Zealand clinics on the cards. Post-transaction, the company retained a $34m undrawn debt facility to execute on further growth opportunities.

The broker initiates with a Buy rating and a target price of $2.94.

This report was published on November 18, 2021. 

Target price is $2.94 Current Price is $2.12 Difference: $0.82
If HLA meets the Shaw and Partners target it will return approximately 39% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 6.40 cents and EPS of 13.10 cents.
At the last closing share price the estimated dividend yield is 3.02%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 16.18.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 6.80 cents and EPS of 13.90 cents.
At the last closing share price the estimated dividend yield is 3.21%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.25.

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

IPH    IPH LIMITED

Legal – Overnight Price: $9.27

Canaccord Genuity rates ((IPH)) as Buy (1) –

Canaccord Genuity notes an increase in comparable underlying earnings for IPH was driven by the Asian business, with performance otherwise in line with expectations in the first four months of FY22. 

In particular patent filing numbers in Singapore were up 23% year-on-year, while the remainder of Asia excluding Singapore was up 20% year-on-year. The broker reiterates expected accelerated underlying earnings growth in the second half. 

The Buy rating and target price of $9.60 are retained. 

This report was published on November 18, 2021.

Target price is $9.60 Current Price is $9.27 Difference: $0.33
If IPH meets the Canaccord Genuity target it will return approximately 4% (excluding dividends, fees and charges).

Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources


Goldman Sachs rates ((IPH)) as Neutral (3) –

Goldman Sachs makes minor changes to its earnings (EBITDA) forecasts following a trading update from IPH Ltd that was broadly in-line with the analyst’s expectations.

A positive performance in Asia was partially offset by disruption from the integration of Shelston IP and Spruson & Ferguson, explains the analyst. In FY22, guided earnings cost savings are thought likely to be offset by disruption from these integration costs.

The broker maintains its Neutral rating as it’s thought the current share price is already pricing in M&A. The target price of $9 is unchanged.

This report was published on November 18 , 2021.

Target price is $9.00 Current Price is $9.27 Difference: minus $0.27 (current price is over target).
If IPH meets the Goldman Sachs target it will return approximately minus 3% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 32.00 cents and EPS of 38.00 cents.
At the last closing share price the estimated dividend yield is 3.45%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.39.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 34.00 cents and EPS of 40.00 cents.
At the last closing share price the estimated dividend yield is 3.67%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 23.17.

Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

JLG    JOHNS LYNG GROUP LIMITED

Building Products & Services – Overnight Price: $7.08

Goldman Sachs rates ((JLG)) as Buy (1) –

While Johns Lyng Group has reiterated FY22 guidance, the broker is confident in it’s own estimates, which are 15% ahead on revenue and 18% ahead on earnings (EBITDA).

The broker sees a significant opportunity in strata management, and growth in the annuity style business as usual (BaU) earnings. The latter is expected to be driven by new panel wins and an increasing share of work from existing panels.

Goldman Sachs factors in a $1.50/share valuation premium to account for future M&A. 

The Buy rating and $6.80 target price are unchanged

This report was published on November 18 , 2021.

Target price is $6.80 Current Price is $7.08 Difference: minus $0.28 (current price is over target).
If JLG meets the Goldman Sachs target it will return approximately minus 4% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 6.00 cents and EPS of 13.00 cents.
At the last closing share price the estimated dividend yield is 0.85%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 54.46.

Forecast for FY23:

Goldman Sachs forecasts a full year FY23 dividend of 7.00 cents and EPS of 14.00 cents.
At the last closing share price the estimated dividend yield is 0.99%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 50.57.

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

MNY    MONEY3 CORPORATION LIMITED

Business & Consumer Credit – Overnight Price: $3.31

Shaw and Partners rates ((MNY)) as Buy (1) –

Despite core market lockdowns in the first quarter of FY22, Money3 Corp has delivered a strong update according to Shaw and Partners. The company guided to full year profit after tax of $50m, 6.5% ahead of the broker's forecast, implying 28% growth. 

The broker highlights revenue in the first quarter of $45.5m was up 35% year-on-year, and a strong operating environment plus a number of tailwinds are all good news for the company. Earnings per share forecasts are upgraded 6%, 5% and 4% through to FY24.

The broker continues to find the company conservatively valued. The Buy rating is retained and the target price increases to $4.31 from $4.13.

The report was published on November 18, 2021.

Target price is $4.31 Current Price is $3.31 Difference: $1
If MNY meets the Shaw and Partners target it will return approximately 30% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 13.70 cents and EPS of 23.90 cents.
At the last closing share price the estimated dividend yield is 4.14%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 13.85.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 16.00 cents and EPS of 27.80 cents.
At the last closing share price the estimated dividend yield is 4.83%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.91.

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

NUF    NUFARM LIMITED

Agriculture – Overnight Price: $4.85

Bell Potter rates ((NUF)) as Buy (1) –

Nufarm's FY21 underlying continuing operations earnings (EBITDA) were broadly in-line with Bell Potter's expectation. The broker feels the impact from a normalisation of domestic conditions will be somewhat offset by recovering acreages in Nth America and Europe.

Management expects price increases and volume growth will help counter margin pressure from increasing COGS as well as global logistics and supply chain challenges. There's also strong demand for crop-protection products due to improved seasonal conditions.

Moreover, the creation of new revenue streams in oils and biofuels should emerge as a theme in FY23 and beyond, points out the analyst.

The Buy rating is unchanged and the target price rises to $5.40 from $5.35.

This report was published on November 18, 2021.

Target price is $5.40 Current Price is $4.85 Difference: $0.55
If NUF meets the Bell Potter target it will return approximately 11% (excluding dividends, fees and charges).
Current consensus price target is $5.55, suggesting upside of 14.5%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 6.00 cents and EPS of 21.80 cents.
At the last closing share price the estimated dividend yield is 1.24%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 22.25.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 24.8, implying annual growth of N/A.
Current consensus DPS estimate is 7.4, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 19.6.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 7.00 cents and EPS of 24.90 cents.
At the last closing share price the estimated dividend yield is 1.44%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 19.48.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 27.1, implying annual growth of 9.3%.
Current consensus DPS estimate is 8.5, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 17.9.

Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

PLT    PLENTI GROUP LIMITED

Business & Consumer Credit – Overnight Price: $1.41

Shaw and Partners rates ((PLT)) as Buy (1) –

Plenti Group's first half results included a number of metrics ahead of Shaw and Partners' forecasts, but the big story is the company achieving both a $1bn loan book and monthly positive profit after tax before December targets. 

The company is now targeting a closing loan portfolio over $1.25bn in the second half and cash profit after tax of more than $1m, as well as a $5bn loan book by 2025. Shaw and Partners, who expects a $2.5bn loan book by 2025, notes this is a material target. 

Cash profit after tax forecasts are upgraded by $0.7m, $0.6m and $1.2m through to FY24. The Buy rating is retained and the target price increases to $2.25 from $2.09. 

This report was published on November 18, 2021.

Target price is $2.25 Current Price is $1.41 Difference: $0.84
If PLT meets the Shaw and Partners target it will return approximately 60% (excluding dividends, fees and charges).
The company's fiscal year ends in March.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 6.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 21.36.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 0.00 cents and EPS of 0.30 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 470.00.

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

UMG    UNITED MALT GROUP LIMITED

Agriculture – Overnight Price: $4.26

Bell Potter rates ((UMG)) as Hold (3) –

United Malt Group's 2H21 processing result implies underlying margin erosion that is more than offsetting the benefit of volume, points out Bell Potter. The overall FY21 profit was a slight miss on the broker's expectations.

Management expects volumes to recover to FY19 levels post 1Q22, and notes additional barley costs of -$8-10m, along with higher energy costs in the UK. 

The broker lowers its FY22 and FY23 profit estimates by -14% and -6% and reduces its target to $4.35 from $4.40. Hold rating maintained. While the worst is likely behind the group, Bell Potter feels the share price already allows for many of the positives in the outlook.

This report was published on November 19, 2021.

Target price is $4.35 Current Price is $4.26 Difference: $0.09
If UMG meets the Bell Potter target it will return approximately 2% (excluding dividends, fees and charges).
Current consensus price target is $4.83, suggesting upside of 13.5%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 6.50 cents and EPS of 15.70 cents.
At the last closing share price the estimated dividend yield is 1.53%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 27.13.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 20.7, implying annual growth of N/A.
Current consensus DPS estimate is 12.5, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 20.6.

Forecast for FY23:

Bell Potter forecasts a full year FY23 dividend of 11.50 cents and EPS of 23.00 cents.
At the last closing share price the estimated dividend yield is 2.70%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.52.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 27.7, implying annual growth of 33.8%.
Current consensus DPS estimate is 16.8, implying a prospective dividend yield of 3.9%.
Current consensus EPS estimate suggests the PER is 15.4.

Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources


Disclaimer:
The content of this information does in no way reflect the opinions of FNArena, or of its journalists. In fact we don't have any opinion about the stock market, its value, future direction or individual shares. FNArena solely reports about what the main experts in the market note, believe and comment on. By doing so we believe we provide intelligent investors with a valuable tool that helps them in making up their own minds, reading market trends and getting a feel for what is happening beneath the surface. This document is provided for informational purposes only. It does not constitute an offer to sell or a solicitation to buy any security or other financial instrument. FNArena employs very experienced journalists who base their work on information believed to be reliable and accurate, though no guarantee is given that the daily report is accurate or complete. Investors should contact their personal adviser before making any investment decision.

As part of emerging new trends overseas, The Australian Broker Call *Extra* Edition also includes providers of sponsored research. Readers should bear in mind, sponsored research, while not necessarily of lower quality, has the embedded complication that the company that is the subject of the research has paid for this research. Providers of sponsored research that can potentially be included in this Report are Breakaway Research, Edison Investment Research, Independent Investment Research, NDF Research, Pitt Street Research, and TMT Analytics.

Decisions about inclusions in this Report are made independently of the providers of stock market research and at full discretion of the team of journalists responsible for content at FNArena. Inclusion does not equal endorsement, in any way, shape or form. This Report is provided for informational purposes only.

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CHARTS

AFP APE BWX CBA CCX DDH ELO EVN HLA IPH JLG MNY NUF PLT UMG

For more info SHARE ANALYSIS: AFP - AFT PHARMACEUTICALS LIMITED

For more info SHARE ANALYSIS: APE - EAGERS AUTOMOTIVE LIMITED

For more info SHARE ANALYSIS: BWX - BWX LIMITED

For more info SHARE ANALYSIS: CBA - COMMONWEALTH BANK OF AUSTRALIA

For more info SHARE ANALYSIS: CCX - CITY CHIC COLLECTIVE LIMITED

For more info SHARE ANALYSIS: DDH - DDH1 LIMITED

For more info SHARE ANALYSIS: ELO - ELMO SOFTWARE LIMITED

For more info SHARE ANALYSIS: EVN - EVOLUTION MINING LIMITED

For more info SHARE ANALYSIS: HLA - HEALTHIA LIMITED

For more info SHARE ANALYSIS: IPH - IPH LIMITED

For more info SHARE ANALYSIS: JLG - JOHNS LYNG GROUP LIMITED

For more info SHARE ANALYSIS: MNY - MONEY3 CORPORATION LIMITED

For more info SHARE ANALYSIS: NUF - NUFARM LIMITED

For more info SHARE ANALYSIS: PLT - PLENTI GROUP LIMITED

For more info SHARE ANALYSIS: UMG - UNITED MALT GROUP LIMITED